It seems obvious workers’ compensation cost containment is about more than just designing and implementing a cracker-jack WC plan. It’s also about obeying all state and federal laws pertaining to employees. Yet, we see, in case after case, employers breaking the law, thinking to saving money when in fact it is costing them money. When implementing your cost containment program make sure to include your corporate attorney on the team.
According to the Contra Costa Times, a pizzeria owner pled guilty to the charge of hiring illegal workers. For admitting he did hire illegals it’s costing him:
1. A two week jail sentence.
2. A $2,500 fine
3. 5 years of probation
4. Possible deportation (although in the U.S. legally) – if felony charges were not waived.
During a raid by federal agents from Immigration and Customs Enforcement (ICE), the owner and several employees (illegals from South America) were arrested.
The owner allegedly paid the workers “under the table” to avoid payroll taxes and to hide the workers illegal status.
And, as they say, “the best of the rest” — authorities were tipped off to the alleged actions by a former illegal employee reportedly fired by the restaurant owner for allegedly stealing money. (workersxzcompxzkit)
Does anyone want to take a bet ICE will have this employer on their radar? You bet’cha.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-786-8286.
We are accepting short articles* (200-300 words) on WC cost containment. Non-salesy, written from employer’s viewpoint. To: [email protected]. Subject Line: “Blog Submission.” Name/Title, Company, Phone/Cell, Short Bio. See http://www.reduceyourworkerscomp.com/. We will contact you. *Non-compensable.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.
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